PICKWELL PROPERTIES LIMITED v KENYA COMMERCIAL BANK LIMITED [2013] KEHC 4383 (KLR)

Facts

The Plaintiff, Pickwell Properties Limited, is the registered proprietor of a building known as 'Shankardass House'. The Defendant, Kenya Commercial Bank Limited, entered into a tenancy agreement with the Plaintiff for the premises on the ground floor and mezzanine floor of the building. The agreement was for a term of 12 years, expiring on December 14, 2005. The Defendant did not vacate the premises upon the expiration of the tenancy and continued to pay rent. The Defendant later demanded the refund of the security deposit, but the Plaintiff refused, claiming the Defendant had not paid arrears of rent.

Issues

1. Whether the Plaintiff is entitled to retain the security deposit paid by the Defendant
2. Whether the Defendant is entitled to a refund or set-off for the sum of Kshs. 9,578,200.00

Reasoning

The Court found that the Defendant had not vacated the premises and had not paid arrears of rent, thus justifying the Plaintiff's retention of the security deposit.

Outcome

The Plaintiff is ordered to retain the security deposit of Kshs. 12,766,223.40.